HUL hikes prices by up to 28 per cent

Hindustan Unilever (HUL) has hiked prices of products by 1-28 per cent across categories such as tea, detergent, soap, shampoo and personal care since October, the company’s stockists said.

Among key price moves, HUL hiked prices of Lux 100 gm soap bar by 6 per cent, Surf Excel Quick Wash detergent by 5-6 per cent, and Surf Excel Blue by 12-13 per cent, they said.

It also hiked prices of Brooke Bond Red Label tea and Taj Mahal tea by 8-14 per cent between mid-October and early November, stockists said. The FMCG major also soft launched Knorr culinary pastes in Maharashtra, made packaging changes and introduced promotion offers on select products. The price hike move comes even as other FMCG firms were considering options to pass on the benefit of a fall in prices of raw materials such as soda ash and palm oil to consumers.

Amid price hikes, HUL has also launched Red label Tea in an experimental “standing pouch” in 200 gm, priced at Rs 40. Introduced in the Mumbai market in the first week of November, the price point for tea in this new packaging is lower than the regular packaged tea, which is priced at Rs 70 for 245 gm or Rs 280 a kg.

The new “standing pouch” aims to offer consumers “a value proposition during the prevailing economic slowdown”, a company official said, but declined to be quoted.

Apart from packaging, there has been no change in quality or blend of tea, the official claimed. “The standing pouch Red Label was first test-launched in Madhya Pradesh before being launched here. We are already seeing good sales off take,” the official said.

HUL also introduced new packaging for its Lux international soaps, while hiking the price by about 6 per cent to Rs 18 (100 gm unit).

HUL launched Pond Age Miracle Daily Resurfacing Cream in a new 10 ml pack priced at Rs 150. A premium product, the cream was earlier available only in 50 gm pack priced at Rs 525. The new stock-keeping unit is aimed at providing “value packs” to consumers, and is in response to the launch of the 30ml pack of Olay Total Effects launched by rival Procter & Gamble.

Available in a gift pack, HUL is also including a “free” photo album with the product as a promotional offer.